On January 1, 2018, Green Corporation purchased 38% of the outstanding voting common stock of Gold Company for $ 300,950. The book value of the acquired shares was $ 275,900. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $ 125,600 and paid cash dividends of $ 26,000. What is the carrying value of Green's investment in Gold at December 31, 2018?

The carrying value of Green’s investments as at 31st December 2018 is $356,654.2

Explanation:

In this question, we are asked to calculate the carrying value of Green’s investments in gold as at December 31st, 2018.

We proceed as follows; Firstly, we identify the following parameters;

The investment in gold company as of January 1 2018 = $300,950

The Depreciation in assets of gold company = $(300,950-275,900)/5 * 38% = $1903.8

Share in cash dividend = 38% * 26,000 = $9,880

Share in net income = 38% * 125,600 = $47,728

Carrying value of green’s investment as at December 31st 2018 = investment + share in cash dividend + share in net income - depreciation = 300,950 + 9,880 + 47,728 - 1903.8 = $356,654.2

idk

explanation:

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: